Agenda item

To consider the report of the Director of Environment and Neighbourhoods outlining the final scope of the Little London and Beeston Hill and Holbeck Housing PFI project, proposing the submission of the ‘Pre-Financial Close Final Business Case’ to Communities and Local Government (CLG) through the Homes and Communities Agency (HCA) and detailing the anticipated affordability position for the project.

The appendix to this report is designated as exempt under Access to Information Procedure Rule 10.4(3)

Further to Minute No. 149, 9^th December 2009, the Director of Environment and Neighbourhoods submitted a report outlining the final scope of the Little London and Beeston Hill and Holbeck Housing PFI Project, proposing the submission of the ‘Pre-Financial Close Final Business Case’ to Communities and Local Government (CLG) through the Homes and Communities Agency (HCA), detailing the anticipated affordability position for the Project and detailing proposals regarding the execution of the contract documentation for this Project.

The report noted that the Project had been the subject of an Equality Impact Assessment, which had been completed in January 2010 and subsequently reviewed in June 2010.  In addition, the report provided details of the outcomes from the assessment process.

The Chair and the Executive Member for Neighbourhoods and Housing thanked Members for the supportive comments which had been received from all political groups in relation to the development of this Project.

The Chief Executive updated the meeting on the current status of the approval process for the Project, with Members noting that implementation of the close arrangements contained within the submitted report were dependent upon CLG approval of the Pre-Preferred Bidder Final Business Case (PPB FBC) being received.

Following consideration of the appendix and related annexes to the submitted report, designated as exempt under Access to Information Procedure Rule 10.4(3), which were considered in private at the conclusion of the meeting it was

RESOLVED –

(a)  That the contents of the submitted report be noted.

(b)  That the final scope of the Little London, Beeston Hill and Holbeck PFI Project (‘Project’), as set out within the submitted report, be confirmed.

(c)  That the submission of the Pre-Financial Close Final Business Case (PFC FBC) to the Homes and Communities Agency and Department for Communities and Local Government be approved, and that the Director of Environment and Neighbourhoods be authorised to approve any necessary amendments to the PFC FBC that arise.

(d)  That the financial implications for the City Council of entering into the Project be approved and that the anticipated affordability contribution for the City Council in relation to the Project in the first full year of service commencement, as set out within the exempt appendix to the submitted report, be noted.

(e)  That the financial issues covered within the exempt appendix of the submitted report, including the balance sheet treatment, be noted.

(f)  That it be noted that the proposed Preferred Bidder will be formally announced and appointed (under the terms of a preferred bidder letter) following HCA/CLG approval of the Pre-Preferred Bidder Final Business Case (PPB FBC) for the Project.

(g)  That approval be given to the arrangements to Financial Close and implementation of the Project, to include (but not by way of limitation) (following the appointment of the proposed Preferred Bidder) the award of contract to and entry into a PFI Project Agreement with a special purpose company, to be established under terms agreed between the City Council and the proposed Preferred Bidder, details of which are set out in the opening paragraph of the exempt appendix to the submitted report.

(h)  That the arrangements at section 7.0 of the submitted report be confirmed, and (for the avoidance of doubt) the Director of Environment and Neighbourhoods (or delegee) be authorised to exercise the delegated powers, as set out at Part 3 Section 3E of the Constitution regarding PPP/PFI and other Major Property and Infrastructure Related projects, in relation to this Project.

(i)  That authority be delegated to the Director of Environment and Neighbourhoods to approve the completion of the Project should the SWAP rateincrease at the time of Financial Close, subject to the Project remaining within the maximum affordability ceiling approved by Executive Board and as set out within the exempt appendix to the submitted report.

(j)  That, without prejudice to the approvals under paragraphs (a) to (i) above, should it become necessary at any time for further decisions to be taken to amend the scope and/or affordability of the Project prior to the next scheduled meeting of Executive Board, authority to take such decisions be delegated to the Director of Environment and Neighbourhoods, subject to Executive Board Members being consulted in the manner now discussed prior to the decisions being taken, and provided that any such decisions shall be reported back to the next scheduled meeting of the Board for information.